Risk management is a crucial component of any investment strategy, as it helps investors to mitigate the potential impact of unfavorable market events. The goal of risk management is to minimize losses and protect gains, so that an investor can achieve their investment goals while minimizing the risk of loss. This can be done by setting stop-loss orders, diversifying investments, and adhering to a disciplined investment strategy. Additionally, risk management can also help investors to make more informed investment decisions, as it takes into account both the potential rewards and risks associated with a given investment opportunity.
The lesson describes the different types of stop risks, their order types, and the different profit maximising exit techniques.